Shareholders may no longer get physical docs from companies

Apr 19, 2022

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NEW DELHI: Shareholder conferences of a number of firms are set to be digital affairs if the suggestions of an knowledgeable panel are carried out.
The committee, headed by company affairs secretary Rajesh Verma, has proposed eliminating bodily supply of paperwork, such because the experiences by auditors or the board of administrators to shareholders and the registrar of firms, and as an alternative mandate digital supply, by way of e-mail or placing up the knowledge on the corporate’s web site.
For many who nonetheless need bodily copies, the committee has advisable that it ought to be made out there, however a price, that shall be determined by the corporate, will must be paid by these in search of onerous copies.
Equally, on the subject of holding AGMs and EGMs, the committee has advisable offering statutory backing to them by digital or hybrid mode. “It was additionally acknowledged that the place the assembly is for an EGM to be carried out solely in digital mode, the discover interval for such conferences could possibly be decreased as prescribed by the federal government,” the report mentioned.



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